How Do Solar Leases Work?
Solar leases are a lot like a lease on a car: You lease the solar panels and receive all the energy they produce, but do not own the panels. You make monthly payments for the panels and are entitled to all the electricity they produce.
How did solar leasing revolutionize the solar industry?
Solar leases have made solar more accessible to homeowners who might not have the funds to install solar panels on their roofs. In the past, solar was so expensive that it was nearly impossible for most homeowners to afford an installation. This is where solar leases revolutionized the solar industry.
What’s the average term of a solar lease?
Solar lease term lengths are usually between 20 and 25 years, which is about the lifespan of solar panels. The solar developer will usually offer a solar monitoring program for your smartphone or online so you can track how your solar panels are performing. You can learn more about various solar monitoring programs here.
Is it cheaper to buy solar or lease?
With a lease, homeowners didn’t have to worry about the upfront costs of solar and could enjoy all of the benefits of it through a monthly lease payment. But, solar is now 70% cheaper than it was 10 years ago, making other solar financing options that can provide greater solar savings than a lease more feasible.
